Straight Line Legal

❓ Business owners - is your IP protected?

I've been doing lots of for businesses recently and one thing that keeps cropping up is (IP). Many business owners don't know what IP they have and how to protect it, so here is a quick overview.

IP is essentially anything you create with your mind that you can own, like a new invention, a piece of music, a book, a logo, or a design. There are various ways to protect your IP to make sure nobody else uses it without your agreement.

💡 For business/trading names, logos, product names, marketing taglines etc - consider registering them as a trade mark.

Using your trade marks can generate goodwill (a valuable asset), which arises from the reputation associated with the trade mark(s)/brand. While unregistered trade marks get some protection, registering means that you can enforce your rights more easily.

💡 If your business designs products where the appearance is important - consider registering those designs.

In the UK, designs get some automatic protections when created but, unlike registered designs, they don't give you monopoly rights and you need to prove that the design was actually copied to sue for infringement.

💡If you make artistic works, sound/film recordings, or literary, dramatic or musical works (or even source code to software!) - your work will automatically be protected by copyright if it's original.

The work has to be recorded and it's helpful to have a date stamp of some kind, to avoid future disputes, Because the author/creator of the work is the first copyright owner, for business collaborations you must be clear on who owns the copyright.

💡 If your business creates products, inventions, processes, or devices - consider applying for a patent.

To be patentable something must be new, involve an inventive step, and be capable of industrial application. There are certain things that are specifically excluded (too much to cover here) and a patent is valid for 20 years from the grant date.

Hopefully this is a useful overview but if you'd like further support with identifying and protecting your IP, drop me a line 📞

Brilliant day on Windermere lake burning off all those chocolate eggs 🥚 🚣‍♂️

Hope everyone is enjoying the bank holiday! 🎉

❓ What are the differences between running a business as a sole trader and a limited company, and how do I know which is right for me?❓

I recently did a post on looking at one of the key differences between operating as a and a ; namely, that as a sole trader you are personally liable for business liabilities / debts.

💡 However, there are other differences which you should consider when making your decision, and I've set out some key ones below 👇

➡ A sole trader has a lower admin burden and can be more cost-efficient than a ltd company. The Companies Act(s) doesn't apply to sole traders, and they have no requirement to file annual company accounts. Overall, you may not need as much specialist accounting/legal support as a sole trader.

➡A ltd company can be viewed as a less risky / more professional trading partner. On the flip side, sole traders can offer a more personal touch.

➡Ltd companies have more options for raising money - they can give investors shares for money (equity) and use debt finance (e.g. bank loans). Sole traders can't use equity funding.

➡Sole traders must rely on their own personal credit rating but this may not be a problem if you have a decent personal credit rating.

➡A director of a ltd company is employed, but a sole trader is classified as ‘self-employed’. One consequence is that sole traders pay less National Insurance contributions but may also have less access to social security benefits.

➡With a ltd company you can split your personal income between a salary and dividends, whereas as a sole trader that option is not available. Be aware of different tax consequences and speak to your accountant!

ℹ Hopefully this info helps you to understand which option your business better. Remember though - you can always start as a sole trader and later transform into a ltd company as the business grows.

If you want any more info, or need support with your business formation, I am happy to help - so please get in touch 👍

❓ Does anyone like using corporate business jargon?❓

Having worked in big, corporate law firms for many years, I had the whole repertoire of business jargon... blue sky thinking, let's circle back, boots on the ground. You name it, we used it!

I typically dislike jargon but I have mixed feelings about terms like these. On the one hand, in the right context they're great for expressing more complex/wordy concepts quickly (assuming everyone knows what they mean!). On the other hand, they can be overused by management to sound important and avoid saying anything of real substance.

💡 Sick of the old cliches, I've decided to write my own business jargon terms. Feel free to steal them... although I have a suspicion you won't want to...

➡ 'Tickling the tortoise'

Streamlining the slow-moving parts of a project or team to get better results.

➡ 'Choosing humous over jam'

Making decisions that focus on the long-term health and sustainability of a business, rather than immediate short-term gains.

➡ 'Keeping a gun in the oven'

Developing a product, service, or policy that is not immediately deployed but is kept in reserve as a powerful response to a potential future scenario.

➡ 'Emptying the catheter'

Periodically eliminating waste, redundancies, or anything that hampers the flow of operations within a business.

➡ 'Catapulting the badger'

Launching a highly aggressive initiative aimed at disrupting the market or catching competitors off guard.

➡ 'Juggling lightsabers'

Carefully managing multiple high-risk / complex / volatile situations simultaneously.

I hope you enjoyed reading these as much as I enjoyed making them 😅

💭 What do you think? Will you be using them? Do you have any of your own you'd like to share?

Let me know in the comments 👇